CNBC announced in a new report that Republican presidential candidate Donald Trump has raised over $4 million in campaign donations with various crypto assets including XRP, Bitcoin, Ethereum, and USDC. However, XRP’s response to the news remained muted due to the altcoin’s value dropping in the last 24 hours. At the time of writing, XRP was trading at $0.60, having fallen 1% in value and 14% in trading volume over the same period.
What’s Happening on the Ripple Front?
Previously, it was reported that Ripple met with the Securities and Exchange Commission (SEC) on July 25, but as the market awaited updates on the outcome, the optimistic process began to turn negative. At the time of writing, XRP’s weighted sentiment was negative at -0.93. This data tracks the general mood of the market regarding an asset. When the value is below zero, it indicates that most social media discussions about the asset are driven by negative emotions like fear, uncertainty, and doubt. This is generally considered a precursor to a price drop.
Additionally, while the altcoin was trading in an ascending channel on the 12-hour chart, the Price Daily Active Address (DAA) Divergence turned negative. This suggests that the rally may not be supported by sufficient demand, and at the time of writing, the value of the data was negative at -81.73%.
This data compares an asset’s price movements with changes in the number of daily active addresses. Investors use this to monitor whether price movements are supported by corresponding network activity. This negative divergence indicates that XRP’s price has moved significantly against the average daily transaction activity.
A large negative divergence of -81.73% shows that the downward trend is gaining momentum. Even though the asset’s price is rising as shown in the ascending channel, there is less buying pressure to sustain the rally.
XRP Chart Analysis
If the process remains negative and buying pressure continues to decrease, XRP’s price could drop to $0.56. If this level does not hold, the altcoin could fall to its 30-day low of $0.52.
However, if the meeting between Ripple and the SEC results in a positive resolution of the legal dispute between the parties, it could shift market sentiment from bearish to bullish. This could push the token’s value from $0.66 to the $0.7 price level.
